It is recommended to use a hosted Content Server with a Cloud hosting company and not locally hosted. Why?:
- Easy setup and configuration
- Easily scale
- 24/7 support
- Can be higher security
- Slow and Unstable network. 99.99999% uptime is not guaranteed
- Risk of losing all information in the case of an accident or IT system failure
Here you have some examples of hosting companies: Rackspace, Amazon Web Services, Microsoft Azure or other hosting company.